Finance glossary
Standard Variable Rate — SVR
Also known as: SVR
In simple terms
The standard variable rate (SVR) is a lender’s default mortgage rate. You usually roll onto it automatically when a fixed or introductory deal ends — and it is often much more expensive.
On this page
What does standard variable rate mean?
The standard variable rate is the ongoing interest rate a lender charges once any special deal period — such as a fix, tracker or discount — comes to an end. Each lender sets its own SVR and can change it more or less whenever it chooses.
It is not usually a rate you actively choose; it is the rate you drift onto by default if you do nothing when your existing deal expires.
How the standard variable rate works
The lender decides the SVR and can move it up or down. It is often loosely influenced by the Bank of England base rate, but the lender is not obliged to pass on base-rate changes in full, so an SVR can stay high even when the base rate falls.
Because the SVR is typically well above the best available deals, most borrowers remortgage or switch to a new product before or as soon as their deal ends, rather than letting it lapse onto the SVR.
How could this affect me?
Slipping onto the SVR can push your monthly payment up sharply — sometimes by hundreds of pounds — for no benefit. Reviewing your mortgage a few months before your deal ends usually saves money.
Occasionally the SVR is a sensible short-term home — for example if you plan to move or repay soon and want to avoid a new tie-in — but as a long-term rate it is rarely the cheapest option.
Things to watch out for
- You can roll onto the SVR automatically when a deal ends, often with a big jump in payments.
- The lender can change its SVR at its discretion, even if the base rate has not moved.
- An SVR is rarely competitive — check the cost of remortgaging before letting a deal lapse.
- There is normally no early repayment charge on the SVR, which is its one flexibility.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, What is a standard variable rate mortgage? (opens in a new tab). Accessed 22 Aug 2026.
- FCA, MCOB 11 — responsible lending and standard variable rates (opens in a new tab). Accessed 22 Aug 2026.